What follows is an excerpt of an article published in Sporting Goods Business, presented here for discussion.
An informal, confidential survey of top execs at 18 large and small sporting goods chains by Sporting Goods Business found that while competitive issues such as product allocation are a concern, service issues (i.e., on-time and accurate deliveries, the buying process, and overall follow through) are a much bigger headache.
Many store execs believe suppliers - many of them public companies - are reducing expenses in service areas in order to reach bottom-line targets.
"There's just less sales people," said one head buyer at a larger regional chain. "They're making people's territories bigger; giving them more accounts. You wind up having a heck of a time getting around to see people. We've got order takers; we need sales people."
Some are looking for more flexibility in the buying process around cancellations or delayed orders. A few are looking for vendors to increase their ability to handle reorders.
Another niche specialty store exec is frustrated that suppliers can be so heavy-handed on issues such as getting orders in on time and other buying issues, yet so sloppy in shipping and communications.
"One of the things I find difficult about trying to build relationships is that when there's a faux pas on their side, we tend to look past it. Those things happen," he said. "But they cause problems."
Late and inconsistent delivery continues to be an ongoing headache for most. Many stores don't find out about delays until they open the boxes. The lack of notification is particularly problematic. Advertising commitments have to be made well before shipments arrive, and a missing item often finds itself in an ad. But product also has to be there at the beginning of the selling season to achieve optimal sell-throughs.
Said an exec at a small regional chain, "If you miss two weeks, you can miss your whole season."
On the brighter side, retailers roundly agree that technology is enhancing the working relationship, particularly in placing and checking on orders. Moreover, several retail execs claim to be working more closely than ever with their key suppliers - regularly sharing information on sell-throughs and setting profitability goals together in the true spirit of partnership.
"Everyone's under the same type of pressure," contended a CEO at another larger regional chain. "How do you leverage all of your resources? Each manager has to make that call. What's the appropriate number of people, whether in product, marketing, or sales, all the way to the reps? What are their roles? Those are tough choices."
Discussion Questions: Are the service issues vexing sporting goods chains common in other retailing channels? What are others doing to address and correct these issues?